Cross-brand collaborations: How to succeed
Cross-brand collaborations are a smart strategy to help improve exposure, sales and market knowledge. As brands try to navigate the turbulent waters of economic crisis and uncertainty escalated by the Covid-19 pandemic, fashion businesses are turning to this strategy to achieve success. It can mean getting access to a much bigger audience, boosting confidence and gaining positive exposure, especially for smaller brands.
There are many reasons behind such collaborations, and to help you approach them correctly, we have come up with three essential strategies.
One of the main reasons for a partnership with another brand is to open up new and complementary markets and gain exposure. The collaboration will increase awareness of your brand, so it is essential to join forces with a brand that has synergy. This does not mean it needs to have the same potential customers – but it must have a significant overlap in customer bases, so you can work closely together to create something these consumers will love.
Increasing brand value
For smaller brands, promoting their brand identity and engaging with consumers can be more difficult. To increase the brand’s cachet and extend its reach, promoting a charitable cause can be effective. The fashion market is very saturated – aligning with a charitable cause will make your brand stand out and even increase sales, because it will give consumers an extra reason to buy.
Giving a sense of urgency
A collaboration can also be an excellent way for small brands to achieve a healthier balance sheet. Partnering with another brand to create a limited capsule collection can give consumers a sense of urgency, generating more sales. For this, you should partner with brands operating in different segments in order to prevent an overlap.